The price of a stablecoin project within the Scroll ecosystem has plummeted by 98% overnight, sparking suspicions of fraud.
Scroll’s ecosystem is under scrutiny after Essence Finance, a stablecoin project on its network, is suspected of a rug pull. Essence Finance’s stablecoin, CHI, crashed by over 98% within 24 hours, dropping to $0.077 amid fears that over $20 million in collateral may have been stolen.
The last communication from the project was a tweet on September 11, further fueling suspicions. Essence Finance’s previous audit report, linked with FEI Protocol V2, is now under review due to the incident.
The sudden drop in CHI’s value, coupled with the disappearance of significant collateral, has left many investors alarmed. Essence Finance’s collapse raises additional concerns about security within the decentralized finance (DeFi) space, especially as Layer-2 networks like Scroll continue to grow rapidly.
This week, Scroll, a Layer-2 network on Ethereum, launched the SCR token through a highly anticipated airdrop. While this generated excitement, reactions from recipients have been mixed. According to Scroll’s official blog, 5.5% of the total SCR supply—equal to 55 million tokens out of 1 billion—was allocated to early contributors and users.
Of these, 40 million SCR tokens were designated for on-chain participants who accumulated at least 200 Scroll Marks, awarded for engagement with the network. Additionally, 1% of tokens were evenly distributed among eligible wallets, while 0.5% was awarded to users meeting certain criteria.
